Milton Academy

“The information requested on the 990 is gathered by the business office staff. The 990 form is prepared by our independent accounting firm, cbiz tofias. The draft form is reviewed by the controller, cfo, and head of school, prior to being reviewed and approved in its entirety (including the schedule b - schedule of contributors) by the audit committee. The entire form (excluding the schedule b - schedule of contributors) is made available on the trustee website, before filing, and all trustees are notified by email that the form 990 is available for review on the trustee website.”

“The controller's office reviews transactions with interested persons (trustees, trustee committee members, ad council members, department heads, officers, or any other person in a position to exercise substantial influence at the organization) to ensure that conflicts are disclosed. All interested persons must complete a conflict of interest policy memorandum of disclosure annually and shall update the disclosure at any time during the year whenever a potential or apparent conflict may arise. The audit committee, the head of school, or the board of trustees, as appropriate, shall address conflicts of interest involving interested persons in accordance with the standards set forth in this policy. Procedures for addressing conflicts of interest with interested persons: 1) prohibition. No interested person may enter into a transaction or arrangement with the organization unless the facts of such transaction or arrangement, including the interested person's interest therein, have been fully disclosed and the transaction or arrangement has been expressly authorized by the disinterested members of the audit committee or the board of trustees, as applicable. 2) duty to disclose. In connection with any transaction or arrangement under consideration by the organization, an interested person must disclose the existence of such interested person's or any other interested person's interest to the organization's audit committee. 3) process: a. An interested person must be given the opportunity to disclose all facts to the audit committee or board of trustees at a meeting called for the purpose of considering the transaction or arrangement and the interested person's interest. After the interested person's presentation, the interested person shall leave the meeting during the discussion of, and the vote on, such transaction or arrangement. B. The chair of the audit committee or the president of the board of trustees shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. C. After exercising due diligence, including a review of surveys of comparable data where appropriate, the audit committee or board of trustees shall determine whether the organization can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest. D. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the audit committee or board of trustees shall determine by a vote of the disinterested trustees of the audit committee or the board of trustees, as applicable, whether the transaction or arrangement is in the organization's best interest, for its own benefit, and whether it is fair and reasonable, and therefore whether to enter into such transaction or arrangement.”

“In setting, reviewing and approving the compensation of the head of school and reviewing and approving the compensation of the administrative council, the compensation committee of milton academy utilizes a three-part process. The process includes: impartial decision makers, comparability data, and concurrent documentation. The procedures are in place so that payments under the organization's executive compensation arrangements are presumed to be reasonable, under treas. Reg. Section 53.4958-6. 1. Impartial decision makers. The compensation arrangement must be approved in advance (before any payment is made) by the compensation committee of milton academy composed entirely of individuals who do not have a conflict of interest with respect to the compensation arrangement. 2. Comparability data. When the compensation committee is considering compensation to covered individuals, it must rely on comparability data that demonstrate the fair market value of the compensation in question. For example, when crafting compensation packages, the compensation committee must secure data that documents compensation levels for similarly qualified individuals in like positions at like organizations. Possible sources include, but are not necessarily limited to: a) expert compensation studies by independent firms; b) survey data from the association of business officers at preparatory schools, national association of independent schools, association of independent schools of new england, or other educational associations c) written job offers for positions at similar organizations. 3. Concurrent documentation. The compensation committee must document how it reached its decisions, including the data on which it relied. Records must be prepared before the later of the next meeting of the authorized body or 60 days after the final action or actions of the authorized body are taken. Records must be reviewed and approved by the compensation committee as reasonable, accurate and complete within a reasonable time period thereafter. To qualify as concurrent documentation, written or electronic records of the compensation committee (such as meeting minutes) must note: a) the terms of the compensation and the date it was approved; b) the members of the compensation committee who were present during the discussion of the compensation that was approved and those who voted on it; c) the comparability data obtained and relied upon and how the data was obtained; d) if the compensation committee determines that reasonable compensation for a specific arrangement is higher or lower than the range of comparability data obtained, the compensation committee must record the basis for its determination, and e) any actions taken with respect to consideration of the compensation by anyone who is otherwise a member of the compensation committee but who had a conflict of interest with respect to the decision on the compensation.”

“Milton academy makes its governing documents, conflict of interest policy and financial statements available to the public via its website: www.milton.edu. The form 990 is available upon request.”

“Change in split interest agreements -130,041. Loss on interest rate swap contract -35,069.”